Strathcona to Acquire Greenfire in C$2.8 Billion Oil Sands Deal

Strathcona Resources has agreed to acquire Greenfire Resources in a cash-and-stock transaction valued at C$2.7 billion to C$2.9 billion, including debt. Greenfire shareholders can choose C$11 in cash per share or 0.25 Strathcona shares; the cash offer represents a 39% premium to Greenfire’s November 6 closing price, while the share option represents about a 15% premium. Waterous Energy Fund, which controls both companies, has agreed to support the deal and will take Strathcona shares for its Greenfire holdings. The acquisition would expand Strathcona’s oil-sands and heavy-oil operations into a larger combined portfolio.